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October 15, 2011, 6:02 am UTC

Updated for the fourth time since 2007, the Index benchmarks 66 countries on a series of indicators covering the critical foundation areas for IT innovation: overall business environment; IT infrastructure, human capital; research and development (R&D); legal environment and public support for industry development.

The 2011 IT Industry Competitiveness Index is available for download on BSA’s website at www.bsa.org/globalindex, along with interactive ranking tables, detailed country summaries, industry case studies, and video interviews with IT experts.

India promisingly climbed 10 spots to 34th in the worldwide rankings on the strength of a strong showing on indicators of human capital and research and development (R&D), among other criteria. This is an outstanding improvement and India was one of the most significant improvers of any countries studied.

Topping the overall rankings for 2011 are the United States, Finland, Singapore, Sweden, and the United Kingdom.

This year’s Index finds that economies traditionally strong in IT are maintaining their positions of leadership in part because “advantage begets advantage” — they have built up solid foundations for technology innovation through years of investment, and they are continuing to reap the benefits. But the global field of competition is becoming more crowded as new challengers, especially in developing Asia, raise their game to meet the standards leaders have set. This shows that with the right investments and improvements to regulatory settings, Asia’s voice is getting louder and with continued effort in the future it will be fair to say that “investment begets advantage” as well.

“This study demonstrates clearly that India’s IT competitiveness will continue to improve through focused steps which foster creativity and innovation within the IT industry,” said Keshav Dhakad, Chair, BSA India Committee. “India’s competitive momentum is hugely encouraging, since unlockingthe next phase of industry growth will require a continued focus on creating a favorable business and legal environment, and improved IT infrastructure. To continue its trajectory as a rising IT power, India will increasingly need a safe and secure digital economy that inspires the trust and confidence of government, business and citizens -- especially as markets across Asia become more competitive,” he added.

“India’s 10 place rise in the global rankings for IT competitiveness is reflective of the continuous focus on increasing R&D and human resource capabilities in India along with creating a dynamic and barrier free environment for the IT industry” said Som Mittal, President, NASSCOM. “India is gradually diversifying its services focus to innovation in new product development and related capabilities reflecting its gradual emergence as a leader in not just IT exports but soon also in IT products.” he added.

“It is abundantly clear from this year’s IT Industry Competitiveness Index that investing in the fundamentals of technology innovation will pay huge dividends over the long term,” said BSA President and CEO Robert Holleyman. “It is also clear that no country holds a monopoly in information technology. There is a proven formula for success, and everyone is free to take advantage of it. Because of that, we are moving to a world with many centers of IT power.”

“India has done well in this year’s rankings because of its performance in Human Capital and Research and Development (R&D),” Holleyman said. “In the years ahead, policymakers in India have an opportunity to build on that momentum in these two sectors. We know from global experience it will be worth the effort.”

The biggest movers in this year’s Index compared to the previous edition in 2009 include Malaysia, which vaulted 11 spots in the overall rankings because of a surge in research and development activity, and India, which leapt 10 spots on the strength of its robust research and development and dynamic human capital environment. A number of other countries — including Singapore, Mexico, Austria, Germany and Poland — posted strong overall gains this year by showing new levels of strength across the board in all IT foundation areas.

“As the global economy starts to recover, it is more important than ever for governments to take a long-term view of IT industry development,” Holleyman said. “Policymakers cannot not just look at this issue on an annual basis or they risk being left behind. They must assess the next seven to nine years, and invest accordingly, in order to make substantive gains in IT competitiveness.”